private equity

noun — 2 senses

private equity

noun
1

Capital stock in a private company that does not offer stock to the general public.

  • That company is closely held; its equity is all private equity.
2

An investment fund that specializes in buying companies in order to restructure and then sell them with a profit; the industry comprising such firms.

  • Although private equity is not inherently villainous, the horror stories from past takeovers give the industry a bad name, especially in cases where it assumes the mantle of landlord or hospital owner.
  • Spain’s La Liga has agreed a €2.7bn (£2.3bn) deal with CVC that could see private equity involved in the running of a large European football league for the first time.2021 August 4, Jasper Jolly, “Spain’s La Liga agrees €2.7bn deal with private equity firm CVC”, in The Guardian:
3 more examples
  • American private equity tycoons are profiteering from the global climate crisis by investing in fossil fuels that are driving greenhouse gas emissions, a new investigation reveals.2022 February 15, Nina Lakhani, “Private equity’s dirty dozen: the 12 US firms funding dirty energy projects”, in The Guardian:
  • This was driven by a scramble for yield among pension funds, insurance companies and endowments during a decade of historically low interest rates in the aftermath of the global financial crisis of 2007-09. Many have more than doubled their allocations to private equity.2022 July 7, “Private equity may be heading for a fall”, in The Economist, →ISSN:
  • Private equity — the industry responsible for bankrupting companies, slashing jobs and raising the mortality rates at the nursing homes it acquires — is making money by gobbling up the rights for old hits and pumping them back into our present.2024 March 18, Marc Hogan, “Same Old Song: Private Equity Is Destroying Our Music Ecosystem”, in The New York Times, →ISSN:
Related terms
privately held, closely held

Entry derived from the Wiktionary, under licence CC BY-SA 4.0 — list of authors.